Reimbursement of Actual Expenditure does not attract Section 194C & 40(a)(ia)

Advocate Akhilesh Kumar Sah Section 40 of the Income Tax Act, 1961 (in short ‘the Act’) disallows certain amounts mentioned therein, notwithstanding anything to the contrary in sections 30 to 38, in computing the income chargeable under the head “Profits and gains of business or profession“. Section 194C of the Act lays down provisions in respect of TDS on payment to contractors. Recently, in ACIT, Kottayam vs. St. Mary’s Rubbers Private Ltd., Kottayam [I.T.A. Nos. 224/Coch/2016, date of decision 15/06/2017], the Revenue, aggrieved on the deletion of dis allowance b...